Many companies today are facing the task of expanding into new markets. Global expansion means a global contingent workforce to manage and to pay. In the Sierra-Cedar White Paper of 2016/2017, companies reported that they use somewhere between 1 – 100 different payroll systems within a single multinational company to pay their workforce and manage their payroll. However, the complexities involved in just the daily deliverance of a global payroll seem like nothing when compared to the complexities of managing the global payroll compliance.
Each country that your business has a workforce in presents its own set of compliance challenges. For a small internal HR team, the unique compliance requirements each country brings can be time consuming, costly and distracting; becoming a large drain on limited resources. Global payroll compliance encompasses a huge amount of manual effort and the resulting likelihood of human error with potentially significant damaging consequences. Global employers must manage and process their employees’ salaries, holiday and sick days and taxes on top of the actual delivery of payslips in a timely and compliant manner.
Extending Beyond Global Compliance
Multinational companies have to comply with ever-changing sets of payroll laws and regulations in each country they operate in. Failure to meet global payroll compliance can result in sizeable consequences. Failing to meet deadlines, filings that are incomplete, and mismanagement of tax requirements will more than likely result in expensive fines, legal repercussions as well as damage to your company’s reputation. Just from a global compliance perspective, can your business afford to take such risks? Using an automated payroll system ensures those risks are negated, allowing your company to focus on achieving your global expansion goals, free from timely, costly or harmful distraction.
Automated payroll will ensure your company complies with federal, state, and local regulations, whilst at the same time managing internal company rules and policies such as pay periods, holidays and overtime. However, the implementation of an automated payroll system also offers your company a veritable wealth of benefits that can aid in your company’s global expansion.
Global Payroll Automation Brings Efficiency
If you are an employer, you need to be as efficient as possible across all areas. Automated payroll drastically reduces the time and resources allocated to processing employee information, taxes, salaries and other information. An automated payroll system can also be integrated into an organization’s other systems for time-keeping performance reporting, and other Human Resource systems that monitor employees’, reports, development, and remuneration. Information on salaries or performance with detailed and accurate histories are available at your fingertips, and needn’t be searched and collated manually by up to 100 separate or paper-based systems. The faster and more accurate time and expense reporting an automated payroll system offers ensures your company’s management has access to real-time accurate information on the global workforce, including job and leave absences as well as labor allocations and expenditures.
An automated payroll system improves a company’s efficiency by reducing the likelihood of human error. Once you take out human error, you eliminate costly overpayments and damaging underpayments. From a global compliance perspective, this efficiency will result in a reduction of legal risks and actions, including judgments, penalties, and potential employee litigation.
Automated Payroll Means Accuracy
Accuracy in payroll cannot be understated. Automated payroll processing means less human interference which equates to higher levels of accuracy. Anyone that has managed payroll knows that computing income taxes and other deductions can be stressful, time-consuming and prone to errors. Once you consider the fluctuations in tax rates new laws being passed at a local, state and Federal level, it is difficult to ensure the accuracy of your payroll. A good automated payroll solution handles all computations automatically and ensures accuracy and adherence to compliance at all times.
An automated payroll solution can also be integrated with time and attendance software. As per the American Payroll Association (APA), mistakes coming from the manual processing of time and attendances account for 1 to 7 percent of complete payroll costs. Accuracy is important on so many levels and to so many parties. Employees want accurate pay; employers want accurate pay and governments want accurate taxes paid. Automated payroll ensures accuracy and keeps all parties happy.
An Automated Payroll Keeps Your Company’s Focus and Helps You Grow
Global expansion and the move into new markets offer a variety of complex challenges. Each new border crossed presents its own unique set of challenges. In order for your company to grow, you will need to implement an automated payroll system. This will bring efficiency, security, accuracy, standardization and importantly, global payroll compliance. Without it, your company could be at risk of costly and timely errors, have to endure an unnecessary drain on resources, whilst all the time leaving yourself open to expensive and harmful legal and regulatory risks.
Let an automated payroll solution free up your time and resources so that your company can focus on achieving your business goals, safe in the knowledge that any potentially damaging payroll distractions or errors will not affect your global expansion plans.